Hi,

Its that time of year again - TAX TIME!  I didnt' see this posted, but didn't spend an hour looking either so if this is duplicate information please forgive......

It just came to my attention that many people who bought homes around 2004-2006 timeframe may be able to have their property tax value lowered because the value of their homes has lowered.  In Orange County (California) the form to request a review needs to be filled out and returned to the assessor by 30 April 2008.  The form requests 3 comps be filled in.  Here is the link to that county tax assessor website:

 http://www.ocgov.com/assessor/pdf/Prop_8_Value_Decline.pdf

I'm certain that other counties have something similar going on, so I thought I'd post here in case any of you might want to inform your clients.  I dont' know if there would be deadlines in your counties too, but it would be really good to know...... 

Bye for now,

Pattie

Hi,

I last posted about a plan Bush was working on, that would rescue thousands of homeowners facing foreclosure by helping them refinance into more affordable loans.  Supposedly the Federal Housing Administration would encourage lenders to forgive a portion of these loans and issue new, smaller loans in exchange for the backing of the U.S. government.

But I can't find anything more concrete than 'the plan being finalized'.  Has anyone heard anything more on this? 

Thanks,

Pattie

The administration proposal, which will be formally unveiled in a speech Monday would designate the Fed as the primary regulator of market stability.  The plan proposes a business conduct regulator who would be in charge of overseeing consumer protection issues and eliminate the distinction between banks and thrift institutions, so that Fed Chairman Ben Bernanke and his colleagues could better detect where threats to the system might be hiding.

I'm curious to any insight or opinions out there on what kind of impact this plan would have. 

Pattie

Hi,

I thought you might find this Bloomberg article interesting - another proposed solution to the mortgage/housing mess. Here's a small excerpt:

".........The only tool left may be for the Fed to help facilitate a Resolution Trust Corp.-type agency that would buy bonds backed by home loans........."

Read the full article here: 

http://www.bloomberg.com/apps/news?pid=20601068&sid=aLBZXQGhAaAg&refer=economy

Any thoughts or opinions on impacts of this approach? 

Pattie

Well Halloween is over and its Christmastime already.  The bird just doesn't get his holiday does he?  Truth is I love Thanksgiving now that I've figured out how to brine a turkey.......

In all seriousness, this is the time of year when a lot of people become very generous, thinking about the homeless, worrying if they are warm enough.  I've helped my children and my robotics teams collect blankets, coats, hats and gloves for the homeless and deliver them to homeless shelters on Christmas eve.  Last year we did something a little different - we talked to a few homeless individuals to find out what they feel they need the most.  The answer really surprised us.  They wanted deodorant (yes, deodorant was 1st on their list), fresh underwear, toothbrushes, lotion, chapstick and soap (apparently the soap in the homeless shelters is very rough on their skin).  Last year we spent hours shopping and putting together packages of various sizes of underwear and toiletries for men, women and children - it was so much fun putting the packages together.  

I am challenging everyone who reads this post to buy a package of underwear, deodorant and soap the next time they are Christmas shopping at Walmart or Target and drop the items off at the homeless shelter of their choice.  The basics are so easily forgotten, maybe because we take them for granted, but I cannot imagine that receiving a fresh pair of underwear or getting my own stick of deodorant would be the high point of my day.  We are all so very lucky to even be reading this on a computer somewhere in the world.

Thanks for reading.......

Realtor magazine states that the 11 markets with a greater than 50 percent risk in the second quarter that home prices will fall are:

Riverside-San Bernardino-Ontario, Calif.
Las Vegas-Paradise
Santa Ana-Anaheim-Irvine, Calif.
Phoenix-Mesa-Scottsdale
Los Angeles-Long Beach-Glendale
West Palm Beach-Boca Raton-Boynton Beach
Sacramento-Arden-Roseville
San Diego-Carlsbad-San Marcos
Oakland-Fremont-Hayward, Calif.
Fort Lauderdale-Pompano Beach-Deerfield Beach
Orlando-Kissimmee

But overall things are looking less risky for other areas.  This is great news, but I'd love to see these 11 looking better in the near future.  Only time will tell........

 

Hi,

I'm working on some documentation to share with my clients and thought I'd share this here as well.

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The lender will provide a good faith estimate of all closing costs. If you use a check rather than wiring money to cover your closing costs, it  will probably have to be a cashier's check. The esccrow company conducting the closing will tell you the required total amount that includes:

• Downpayment.
• Loan origination fees.
• Points, or loan discount fees you pay to receive a lower interest rate.
• Appraisal fee.
• Credit report.
• Private mortgage insurance premium.
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage.
• Property tax escrow, if being paid as part of the mortgage.
• Deed recording fees.
• Title insurance policy premiums.
• Survey.
• Inspection fees.
• Notary fees.
• Prorations for your share of costs such as utility bills and property taxes.

About Prorations. Because some costs are paid on a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is the method used for the sellers to pay you back or for you to pay them for bills that they may have paid in advance. 


Documents to Keep From Closing

• Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs from the closing. You'll need this for income tax purposes and when you sell the home.
• Truth in Lending Statement.  This form summarizes the terms of your mortgage loan.
• The mortgage and the note (two pieces of paper) which spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
• The deed which transfers ownership of the property to you.
• Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association's rules and restrictions.
• Insurance policies provide a record and proof of your coverage.

Hi,

I'm doing another little research project and need your help again.  You were all so awesome on giving me perspective on the last homework assignment that I thought I'd come here to get input on this one too (especially since I have no experience with this particular subject).  I need to find out what mortgage brokers think about live transfer leads - are they working for them?  Are they worth the investment?  Is there any 'gotcha' to watch for?

Thanks so much

More people are choosing to rent, not own, which is great news for landlords and investors.

The top five highest rent increases are in New York City, where 80% of the population rents, Seattle, San Francisco, Oakland and Orange County, Calif.  Other cities ranking high for rent increases are Salt Lake City and Portland.   

Foreclosures and the subprime crisis are considered major contributors to the current state of the rental market.  I'm trying to really grasp the causes of the situation, and wonder what other contributors are feeding this situation - for instance the (un)availability of affordable housing in California is obviously a big factor (big surprise).  Are people waiting for the bottom of the market?  Is it too difficult (or too scarey and intimidating) to obtain mortgages due to lenders tightening their requirements?  Is there something that I've overlooked?

 

You probably already know this, but I'm pretty excited about it so I'll share it here.

Yesterday the The U.S. House of Representatives voted to get rid of a tax burden for home owners who have had a loan forgiven or foreclosed on because they were unable to make their mortgage payments. The Mortgage Cancellation Tax Relief Act, H.R. 3648, passed by a vote of 386 to 27. Similar legislation is making its way through the Senate.

Also, another bill has been sent to the House Judiciary Committee that will revise the bankruptcy code to allow judges to order mortgage lenders to ease terms for home owners in bankruptcy proceedings.